Are you looking to improve your current credit score? It can be quite difficult to give it a boost overnight, particularly if you had bad credit in the past. Follow these five tips to make positive changes and watch your credit improve.
Reduce Credit Card Balances
Look at your credit cards and see which card has the largest rate of interest. Begin by paying that one off first. Once you’ve settled the balance, start on the next. This is called the snowball method. As you pay the balance of each card, you will have more money to pay towards the next one.
Avoid Nuisance Creditors
It’s very tempting to take out lots of credit cards. Big stores always have tempting offers if you have a store card with them, but this results in balances across several different credit cards. This can really negatively impact your credit score. Pay off your small balances first to improve your credit.
Do Some Loan Shopping
When you apply for some credit, your score will dip for the next year. If you’re going to be looking for a loan, it’s important to consult a professional. An IFA can help you find the ideal loan by using software for IFAs. This software for IFAs can assist you in finding the best deal. If you are an IFA, visit Intelliflo for software for IFAs.
Pay All Bills Promptly
This is the easiest way to boost your overall credit score. Creditors like to know that you are dependable and reliable with good bill-paying habits. If you forget about your bills, put them on a calendar or put them in a designated bill-paying pile. Put routines in place so you won’t lose them and never miss a payment again.
Don’t Take Any Risks
Lulls in a credit score are normally caused by missing payments or paying less. These behaviours are a big indicator of risk. A red flag is also raised when you charge more than you normally would to your credit card. The credit agencies will show that you are a credit risk by lowering your score. Keep everything consistent, keep paying off those cards by paying your card bills when they’re due, and you will watch your score eventually improve.